One of Australia’s pioneering streaming services, Optus Sport, is poised to exit the local market, potentially as early as this week. This move marks a significant shift in the over-the-top (OTT) sports broadcast revolution that has unfolded over the past decade. Optus Sport, which launched nearly nine years ago, is reportedly close to selling its suite of broadcasting rights, including its crown jewel, the Premier League.
The anticipated departure of Optus Sport represents the most substantial exit in a decade-long frenzy of rights acquisitions, a period during which sports fans often found themselves subscribing to multiple pay-TV platforms to follow their favorite sports. With this exit, the landscape of sports streaming in Australia is set to change dramatically.
The Rise of Stan Sport
Following the acquisition of Foxtel by UK-based, Saudi-backed Dazn earlier this year, Stan—owned by Nine Entertainment—emerges as the only home-grown sport subscription streaming player in Australia. Stan, initially a joint venture between Nine and Fairfax Media, was established in 2015 with a primary focus on entertainment. However, its anticipated acquisition of Optus’ sports rights for an estimated $300 million positions Stan Sport as a formidable competitor to Foxtel/Kayo Sports, which holds the rights to major leagues like the AFL and NRL.
The deal with Stan is expected to be announced soon, but for now, it’s business as usual for Optus Sport. The company continues to promote events such as the UEFA Women’s Euro 2025 tournament, scheduled to start in July. An Optus spokesperson stated, “All companies regularly review their businesses to ensure they are maximizing value and realizing their full potential—Optus is no different. We don’t comment on speculation.”
Optus Sport’s Impact and Challenges
Optus Sport launched in 2016 as an early adopter of the OTT distribution model, bypassing traditional cable or satellite providers to deliver content directly via the internet. This strategy initially proved successful, particularly during the period from 2019 to 2023, which saw significant events like the Women’s World Cup add approximately $1 billion to the brand’s value.
“It was undeniably a good thing for the first six years, but the writing has been on the wall for a while relative to other streamers, as globalisation has occurred and new players have come into the market, and Optus hasn’t been able to keep pace with that.” — Jon Marquard, Sports Rights Consultant
Despite offering a comprehensive football package, including the Women’s Super League in England and the J.League, Optus Sport struggled to become the leading destination for football fans. Paramount+ and Stan Sport have secured rights to other major football competitions, further fragmenting the market.
Competitive Landscape and Future Implications
The sports streaming market in Australia is becoming increasingly competitive. Amazon, through its ICC cricket rights, and Disney, with ESPN on its Disney+ service, have established significant presences. Meanwhile, other global players like Netflix and Apple have also acquired sports rights overseas.
Stan’s growing portfolio, which includes Wimbledon and the British & Irish Lions tour, highlights its expanding influence across multiple sports. The service’s basic package costs $12 per month, with an additional $15 for Stan Sport. Despite having 2.3 million subscribers, only a fraction currently pay for the sports package.
“As a result of this acquisition, I would expect them to look at their product offering again to see how they can get their sport package to a larger proportion of their customer base.” — Jon Marquard
Optus Sport’s exit, which retains Premier League rights until 2028, simplifies the subscription landscape for football fans, potentially saving them $10 to $25 per month. However, Kayo’s resurgence complicates the picture, as it currently broadcasts the FIFA Club World Cup following Dazn’s $1 billion deal with FIFA.
Looking Ahead: The Future of Sports Broadcasting in Australia
Dazn’s acquisition of Foxtel, backed by Saudi Arabia’s Public Investment Fund, suggests further changes are on the horizon for the local market. The company, which paid $3.4 billion for Foxtel and its 4.7 million subscribers, appears committed to recouping its investment through strategic offerings like the Club World Cup.
Free-to-air television remains a primary mode of sports consumption in Australia, protected by anti-siphoning laws. However, the shift towards internet-served smart TVs and mobile devices is challenging this traditional model. Recent investments by networks like Seven and Nine in ad-supported online platforms indicate an awareness of this shift.
As Optus Sport exits the scene, the sports streaming race in Australia is finely poised, with new dynamics emerging as companies vie for dominance in a rapidly evolving market.
